British pharmaceutical giant GlaxoSmithKline (GSK) announced today, Friday, that it has agreed to settle a US lawsuit over the possibility that discontinued drug Zantac could cause cancer, preventing the first lawsuit in the case from reaching court this month.

The company said it reached a confidentiality agreement with a California resident who says he developed bladder cancer as a result of taking Zantac.

The company indicated that its agreement to the settlement reflected its desire not to be distracted by a lengthy litigation. The company has acknowledged no liability and has stated that it will vigorously defend any further legal action related to Zantac.

Background on the Lawsuit

The lawsuit was due to begin on July 24, marking the first truth check on Zantac’s connection to cancer.

There are a limited number of lawsuits related to the same issue in California and about 78,000 in Delaware court.

Zantac’s Popularity and Market Value

With its approval in 1983, Zantac, used to treat acidity and heartburn, became one of the first drugs to surpass one billion dollars in annual sales.

While the drug was initially marketed by GSK’s main manufacturing company, it was sold by many other companies, including Pfizer, Boehringer Ingelheim and Sanofi, as well as post-ownership pharmaceutical companies that made the drugs.

Other Settlements and Lawsuits Related to Zantac

Faiz and Sanofi settled a similar lawsuit by the same plaintiff in California late last year.

Concerns about protracted lawsuits and possible losses caused GSK, Sanofi, Pfizer and Halion to lose $40 billion in market value in about one week in August.

The Science Behind the Lawsuits

In 2019, pharmacies and companies stopped selling Zantac over concerns that its main active ingredient, ranitidine, breaks down over time to form a chemical called NDMA (dimethylnitrosamine), which is present in small amounts in some foods and water, but studies came to the conclusion. Too much of it can cause cancer.

And the U.S. Food and Drug Administration (FDA) withdrew all remaining Zantac drugs on the market and all drugs made using the same formulation from the market in 2020, sparking a slew of lawsuits. The companies involved have repeatedly denied that Zantac causes cancer.